Published on 4/28/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.57 million contingent income barrier autocalls on Tesla, Amazon, Microsoft
By William Gullotti
Buffalo, N.Y., April 28 – HSBC USA Inc. priced $3.57 million of autocallable contingent income barrier notes due April 21, 2025 linked to the least performing of the stocks of Tesla, Inc., Amazon.com, Inc. and Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 16% if each stock closes at or above its coupon trigger level, 50% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 50% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Tesla, Inc., Amazon.com, Inc., Microsoft Corp.
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| Amount: | $3,569,000
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| Maturity: | April 21, 2025
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| Coupon: | 16% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | $1,004.29 for Tesla, $3,055.70 for Amazon, $280.52 for Microsoft
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| Coupon triggers: | $502.145 for Tesla, $1,527.85 for Amazon, $140.26 for Microsoft; 50% of initial levels
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| Barrier levels: | $502.145 for Tesla, $1,527.85 for Amazon, $140.26 for Microsoft; 50% of initial levels
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| Pricing date: | April 18
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| Settlement date: | April 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439JT62
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